Coinbase Launches Smart Wallets To Simplify Crypto Onboarding

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As a seasoned crypto investor with years of experience navigating the complexities of blockchain technology and wallet management, I am thrilled about Coinbase’s introduction of “smart wallets.” The ease of use and accessibility that these next-generation wallets offer are a game-changer in onboarding new users to the crypto space.

As a cryptocurrency analyst, I’d express it this way: I’ve noticed that Coinbase has recently unveiled the concept of “smart wallets.” These innovative wallets are designed to streamline the process of getting started with crypto for users, eliminating the high fees and complicated procedures often encountered when using conventional crypto wallets.

I, as an analyst, believe that Coinbase aims to bring in more than a billion users by introducing simplified, gasless transactions and multi-chain compatibility in their latest offering.

Smart Wallets 

As a researcher studying the latest developments in digital wallet technology, I’d like to share that on June 5, 2024, Coinbase unveiled their “smart wallets” campaign. This innovation aims to simplify the shift towards blockchain transactions by seamlessly connecting with various applications and accepting networks like Base and Ethereum. Based on Coinbase’s announcement, smart wallets serve to minimize hurdles such as network fees and recovery phrases, making the experience more user-friendly for its customers.

As a seasoned analyst, I’m thrilled to share that we’re taking a significant leap forward in our self-custodial wallet development. Introducing smart wallets: a game-changer in our pursuit of bringing over 1 billion users into the blockchain ecosystem. These innovative wallets tackle the most common crypto user frustrations – intricate onboarding processes, high network fees, and cumbersome recovery phrases. By addressing these challenges head-on, we’re making the move to on-chain seamless and more accessible than ever before.

Smart wallets, as mentioned by Coinbase, provide an uncomplicated experience with multi-chain compatibility and application integration. This simplified process is akin to logging into a website. Traditionally, onboarding to blockchains has been a slow and costly endeavor. However, the user-friendly nature of smart wallets can efficiently bring in new users at minimal expense.

As a researcher in the field of blockchain technology, I’ve noticed that the process of going on-chain has historically been a complex and costly endeavor. This was due in part to the use of separate wallet apps and first-generation blockchains that struggled with scalability. However, with the advent of smart wallets and next-generation Layer 2 networks like Base, things are changing. The ease of use offered by these new solutions is making it simpler than ever before for people to get on-chain. No longer do we have to deal with the slow, expensive, and cumbersome processes of the past. Instead, going on-chain is now an easy, fast, and affordable experience.

How Do Smart Wallets Work? 

Expert: In contrast to conventional digital wallets, intelligent wallets dispense with the need for a seed phrase. Instead, they employ a passkey system that amplifies security through public key cryptography. This method is commonly utilized on mobile devices and computers for enhanced login protection. Additionally, smart wallets allow users to swiftly establish new wallets and make instant payments from their Coinbase balances.

As a crypto investor, I’m always on the lookout for new and innovative ways to manage my digital assets securely. Coinbase, one of the leading cryptocurrency exchanges, is taking steps to encourage wallet developers to adopt smart wallets through initiatives like the Base Gasless Campaign. This program offers up to $15,000 in gas credits to help cover the transaction fees for developers as they build and integrate these advanced wallet solutions on the Ethereum network. By doing so, Coinbase aims to make using smart wallets more accessible and cost-effective for the entire crypto community.

Key Benefits 

As a crypto investor, I appreciate the convenience of using Coinbase’s smart wallets. When I want to create a new wallet, I can do it quickly and easily without having to switch apps or deal with additional extensions or software. Instead, I can securely authenticate myself through Face ID, fingerprint, Yubikey, or even my Google Chrome profile. This streamlined process saves me time and reduces the complexity of managing multiple wallets. Moreover, smart wallets enable me to pay using my custodial wallet balances or Coinbase account balances, thereby avoiding frustrating insufficient balance errors.

One advantage is the cross-platform compatibility, enabling users to move their digital wallet, identity, and balances between well-known on-chain applications. Developers can also provide gasless transactions and sponsor them through Paymaster integrations. Additionally, Coinbase introduces a companion web application featuring functions like asset and identity management, purchasing, swapping, sending Non-Fungible Tokens (NFTs), and viewing transaction history.

As a researcher studying the rollout of smart wallets, I can share that these innovative digital wallets will initially accommodate a range of popular on-chain applications at their inception. Specifically, you’ll find Base, Ethereum, Optimism, Arbitrum, Polygon, Avalanche, BNB Chain, and Zora among the supported platforms.

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2024-06-06 23:10